Red Pine gets investment boost, welcomes Alamos as shareholder

According to Mining News Pro - Each FT unit comprises one flow-through common share of the company and one-half of one non-flow-through common share purchase warrant. Each NFT unit comprises one common share (issued on a non-flow-through basis) and one whole warrant. A full warrant is exercisable for one common share at a price of C$0.05 per share for a period of 24 months following the offering closing date.

Among the participants of the offering was Toronto-based gold producer Alamos Gold, which subscribed for nearly 53 million NFT units for a total investment of C$1.85 million. Alamos now owns 11.1% of Red Pine’s issued and outstanding common shares on an undiluted basis and 19.99% on a partially diluted basis. Alamos did not hold any common shares of Red Pine prior to the offering.

“The addition of Alamos as a strategic investor is a major step in validating the Wawa gold project as a top-tier exploration property,” Red Pine CEO Quentin Yarie commented on the latest investment boost.

The Wawa property — covering 6,519 hectares within McMurray Township, approximately two kilometres southeast of Wawa, Ontario — has hosted numerous gold mines with past production of over 120,000 ounces. A recent technical report pegs indicated resources at 1.2 million tonnes grading 5.31 grams gold per tonne for 205,000 ounces of gold.

The project is 60% owned by Red Pine, with Citabar LP holding the remaining 40% interest.